Its shares rose sharply and fell back just as quickly, and with higher levels of volatility there’s always the risk investors could lose out.īut examples like these have the potential to impact you even if you had no interest in speculating on a “risky” stock. Its market capitalisation is now down to nearly one-third of what it was back in January 2021. In the end, GameStop’s rise was short-lived. The meme stock saga is a reminder why it’s a good idea to consider a flexible investing approach. Yes, meme stocks are volatile, but they’re also evidence of a new generation of amateur investors challenging the accepted norms of financial services. The market is still catching its breath but what can we all learn from the surge – and subsequent fall – in GameStop’s shares? They also have a reputation for wild swings in share prices. They’re powered by easy-to-use online trading platforms and even come with their own brand of slang, such as a YOLO (You Only Live Once) trade. GameStop is the most famous example of a “meme stock” – so called because tips are hyped up and shared on social media forums, particularly Reddit. The company’s shares were so in demand that GameStop unseated Tesla as the year’s most searched-for stock. Its market capitalisation – the total value of all its shares – was more than US$20 billion (£14.7 billion) – up from less than US$1bn (£735 million) only a few months before. This time last year the investing world was in a frenzy over GameStop.įor a brief time, shares in the struggling video game retailer soared. Information An icon of an information logo. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Video Camera An icon of a video camera shape. Previous An icon of an arrow pointing to the left. Notice An explanation mark centred inside a circle. Next An icon of an arrow pointing to the right. Hamburger Menu Icon An icon used to represent a collapsed menu. Search Icon A magnifying glass icon that is used to represent the function of searching. Magnifying Glass An icon of a magnifying glass. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Breaking An icon of an exclamation mark on a circular background. Pause Icon A two-lined pause icon for stopping interactions. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Is Public An icon of a human eye and eyelashes. Telephone An icon of a traditional telephone receiver.
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